1. Erica Cummings Grant Coordinator 1

2.  The New Mexico Department of Homeland Security and Emergency Management (DHSEM) is responsible for:  Monitoring all grantees that receive Homeland Security/FEMA/DOT funding to ensure compliance with audit requirements, applicable laws, rules, and regulations  To assist DHSEM in fulfilling its obligations, the Fiscal Monitoring will be an integral element of the Grant Unit 2

3.  The Grant Unit is responsible for fiscal monitoring:  All grantees regardless of the federal funding source  with the single exception of Disaster Declarations  Fiscal monitoring is done through  documentation review, on-site visits, review of A-133 Single Audit reports and technical assistance  All DHSEM grant recipients have been assigned a Grant Specialist  responsible for this fiscal monitoring function 3

4.  Provide on-going fiscal oversight and fiscal monitoring of Homeland Security/FEMA/DOT sub-grant agreements  Obtain a reasonable assurance that grantees are expending funds in accordance with State and Federal guidelines  Inform grantees of fiscal compliance requirements 4

5.  Provide technical advice and training to grantees as necessary and feasible  Help ensure timely expenditure of grant funds  Work with grantees to help detect and prevent fraud and abuse 5

6.  Continuously develop and administer a fiscal monitoring program ◦ This will provide a reasonable assurance that grant funds are in compliance with Federal and State financial management requirements  Track Single Audit (A-133) findings and fiscal monitoring issues of grantees ◦ To identify trends and address problem areas 6

7.  Identify and provide technical assistance to grantees  Ensure corrective action from previous fiscal monitoring reports, audits, or from any other sources that require such follow-up 7

8.  Identify innovative tools and techniques for the achievement of Grant Unit goals and objectives  Review the adequacy of internal controls and the reliability of the Grantee’s financial management system  as they relate to the sub-grant agreements 8

9.  Help to ensure that the Grantee meets the terms and conditions of the sub-grant agreement(s)  as they relate to fiscal goals or requirements 9

10.  Help to ensure that amounts reported are accurate, allocable, allowable, reasonable, necessary, and supported by documentation  Continuously develop Grant Unit staff  Attend/Participate in trainings and conferences to ensure professional competence and integrity of the Grant Unit 10

11.  Monitoring is an ongoing process  The Grant Unit will consider monitoring needs at various milestones  Initial Award: Monitoring may begin at the time a sub- grant agreement is executed  A new grantee may be unfamiliar with the financial reporting and management requirements of the grant  Technical assistance at the initial execution of the sub-grant agreement for new grantees may be beneficial 11

12.  Periodic Monitoring: On-going monitoring should be conducted for all grant recipients  The types and frequency of the monitoring will depend on the awarded grants and grantee performance 12

13.  Completion of sub-grant agreement:  When a grantee completes a sub-grant agreement  A final fiscal review may be conducted 13

14.  Monitoring schedules will be completed on a routine basis and reviewed by the Grant Unit Manager  Staff will strive to maintain a six (6) month schedule  To include meetings, trainings, desk reviews, on- site reviews and follow-up visits 14

15.  The scheduling of new monitoring efforts should be based on an assessment of risks in two broad areas:  Compliance  Performance 15

16.  Compliance the likelihood that the grantee may violate state regulations, fail to comply with grant or statutory requirements, or be open to fraud abuse  Performance the likelihood that, even without actual compliance violations, the results of the activity may not result in desired outcome for the grant 16

17.  This risk analysis should be an objective assessment based upon information from variety of sources, including:  Funding amounts awarded to a grantee  Recent Single Audit (A-133) Report reviews  Input from Federal Fiscal Unit, Sub-grant agreement Unit, or other staff 17

18.  Time since last Grantee review  Information from other sources  Results of previous on-site/office based reviews and follow-up activities 18

19.  Office Based Monitoring (Desk Audits) should be performed for grantees  Office based monitoring should include  A review of the sub-grant agreement (core) file o to ensure that all applicable documents are accounted for ~Example: inventory control forms o financial and programmatic reports are current 19

20.  It is the responsibility of the Grant Specialist to obtain a current copy of the NIMS compliance report for all sub-recipients 20

21.  Field Based Monitoring  Will be performed at least twice per year  Depending on the risk of the sub-recipient 21

22.  Office and field based monitoring will follow the same or similar processes both leading to a monitoring report being issued  Office based monitoring will not require the Grant Specialist to travel to the grantee site  Documentation will be obtained from the grantee through mail, emails, faxes, and phone calls 22

23.  Equipment verification and documentation collection will be obtained through Field Based Monitoring  Both forms of monitoring must be documented by the Grant Specialist, and circulated through appropriate channels  A checklist has been developed for use during office based monitoring 23

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27. 27 Erica Cummings Grant Coordinator 505-476-9603 Erica.Cummings@state.nm.us